bold predictionsGreetings Torstar-ians,
The research says that shareprice drift before earnings tends to predict if the earnings will be good or bad.
The share price was drifting upwards for until today, so I feel that is a bit of a mixed signal.
My bold prediction is that we will have some great numbers, and that the share price will get into
the $2.05 area.
I'm hoping that today's pretty big dip (on reatlvely large volume) was an institutional investor who could not risk poor numbers this quarter.
If some shareholders (retail?) had their shares shaken from them (as it were) then that would only amplify gains for whoever got those shares today (assuming, as I am, that there will be an earnings surprise, as it's called).
I've often seen share prices tank the day before earnings, only to spike on the day of earnings. So, let's see what happens.
As I seem to never tire of saying, my take is that the story has changed (from bad to good) and that we're in for a string of great results.
I'm going to have avoid the temptation to get out at my break-even of $3.12 (assuming we get there) and hold out for some substantial gains beyond that breakeven point. Ever the optimist here....
Hang on to your hats!